World News
HSFO Prices May Rise on Restricted Supply
High sulfur fuel oil (HSFO) prices may start to rise on the back of restricted availability, a seminar was told.
Once the mainstay of the bunker industry, HSFO now finds itself in short supply across global bunker markets.
If not restricted in terms of availability, there may be barging issues, the sales manager at bunker company LQM told the Clean Shipping Alliance seminar in London.
Neil Lamerton's presentation included a round robin of HSFO spot availability in the various bunker fuel markets around the world.
HSFO was scarce in the Middle East but reasonable in Asia where barging is tight.
His assessment prompted a question from a seminar participant: "Did he expect HSFO prices to rise given the supply situation?"
Lamerton said that was likely. He advised ship operators to "book ahead" to secure their supplies of the high sulfur fuel oil.
CSA is a pro-scrubber lobby group. Ships equipped with scrubbers can continue to use HSFO while remaining in compliance with the IMO2020 sulfur cap on bunker fuel oil which is set at 0.5%. HSFO carries 3.5% sulfur.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 556.00 | 9.50 | 674.00 | 4.50 |
| Rotterdam | 507.00 | 5.00 | 663.50 | 12.50 |
| Houston | 549.50 | 2.50 | 677.00 | 5.00 |
| Fujairah | 548.50 | 7.00 | 748.50 | 4.50 |
| Global 20 Ports Average | 580.00 | 3.50 | 761.00 | 1.50 |
| Global 4 Ports Average | 540.00 | 6.50 | 691.00 | 6.50 |
| Global Average Bunker Price | 625.50 | 7.00 | 809.50 | 1.50 |
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